Covivio Hotels (COVH) Q3 2024 TU earnings summary

Executive summary

• Group revenue for the first nine months of 2024 reached €509 million, up 4.9% at current scope and 6.8% like-for-like, led by strong hotel and German residential performance and supported by progress on disposals.

• Hotels revenue grew 7.1% like-for-like, with Southern Europe and Germany as key contributors, and France benefiting from the Olympic Games.

• Office occupancy improved to 95.6% by September, reflecting favorable letting momentum and city-center assets achieving high reversion rates.

• €391 million in new disposal agreements were signed by September, averaging a 3% margin above 2023 appraisals, with €300 million in disposals under advanced discussion.

• Management remains optimistic for the remainder of the year, with further guidance updates expected with full-year results.

Financial highlights

• Group revenue reached €509 million for the first nine months of 2024, a 4.9% increase at current scope and 6.8% like-for-like year-over-year.

• Hotels revenue up 7.1% like-for-like, offices up 8.3%, and German residential up 4.2%.

• Office occupancy rate at 95.6%, hotels at 100%, and German residential at 98.9%.

• Like-for-like rental growth was 6.8%, with indexation contributing 2.8 points, rental uplift and occupancy 3 points, and hotel variable revenues 1 point.

• Occupancy rate improved to 97.3%, up 20 basis points from June.

Outlook and guidance

• Management expressed increased optimism for the remainder of the year, with guidance to be updated with full-year results in February.

• Completion of a major deal with AccorInvest is scheduled by year-end, consolidating hotel operating companies.

• WiZiU hotel management platform will expand to 24 hotels and 3,090 rooms by end-2024, representing over €500 million in assets.